Influences On Business Flashcards
(26 cards)
4 ethical considerations in business ?
-treatment of workers
-sourcing of materials
-treatment of customers and marketing decisions
-treatment of suppliers
How can a business be ethical with there sourcing of there materials ?
-avoid buying from business that employ child labour
-not buy from suppliers who are not sustainable
How can a business be ethical with there treatment of workers ?
-not employ child labour
-play workers fair wage
-ensure workers do not work too long hours
How can a business be ethical with the treatment of suppliers ?
-avoid late payments of money
-pay prices that are fair
Pros of behaving ethically in the business ?
-profits may be higher because there may be higher sales and lower costs
-investment may be higher as they are ethical
Cons of a business behaving ethically ?
-sales may be lower as the supplies are ethically so may cost more
-investment may be lower due to profits not being high
How are business environmentally friendly ?
-sustainable
-waste disposal
-pollution
-climate change
Pros of being environmentally friendly ?
-lower taxes
-a business may gain subsidies from the government for environmentally-friendly production
Cons of being environmentally friendly ?
-capital costs may rise if the business invests
-production costs may be higher if materials and produced in a environmentally-friendly way
What is the economic climate ?
Refers to the levels of income and employment in the country
What is consumer income ?
The smoky of money a consumer receives from work and assets
Impacts on a business of rising income and employment is ?
-experience a increase in sales as consumers have more money to spend
-sales of luxury goods will increase
-business that produce cheaper goods may fall
Impacts on a business when income and employment levels fall ?
-recuse production costs
-improving worker productivity
-reduce its overdraft
-cheaper products
-lower prices
What is globalisation ?
The process of which business activity around the world has become increasingly interconnected
How are business global ?
-buying and selling globally
-producing in diffrent countries
-raise investment from other countries
-business may recruit workers from other countries
How is globalisation easier ?
Increase in transport
Better telecommunications
Reduced trading barriers
What are multinational companies ?
Business that operate in different counties around the world
Advantage of being MNC ?
-increased sales
-risk is spread
-lower costs
-tax avoidance
Pros and cons of locating abroad ?
Pros: lower production costs, expert workers could be closer
Cons: quality control may be difficult, transport costs could be high
What is international brand ?
An image or values for a product that are communicated in countries around the world
Consideration of international branding ?
-language
-product promotion
-legal issues
-bribery
-income level
How can business compete internationally ?
-expanding into other counties
-products suit diffrent countries
-most efficient method of production
-diffrent quality of goods needed
What is the interdependent nature of a business ?
Refers to the links between different areas of business that affect decision making
What does financial information do for a business ?
Helps them makes decisions
